As one of the UAE’s most established real estate brokerage firms, we at Better Homes offer you the expertise necessary to help you find the ideal property for your needs. Off plan properties are developments under construction that are offered at lower prices than ready properties and at attractive payment plans.
Wish to pay very small deposits until the off plan property is handed over? The good news is that developers are thinking of creative ways of enticing buyers to purchase off plan property. One such way includes waiving off the four percent registration fee for buyers and rolling out monthly payment schemes such as “capital guarantee” and “money back”. Off plan properties offer you the chance to buy a unit at a low price and gain maximum returns when you sell it later, without having to bear any costs associated with actual home ownership.
The government has introduced numerous laws to ensure legal compliance when it comes to off plan property investment. For instance, Law 8 of 2007 requires developers to register their off plan projects with Dubai Land Department and Real Estate Regulatory Agency (RERA) prior to promoting or selling units. In addition, construction progress must reach at least 20 percent completion prior to commencing promotions. When you purchase off plan units that offer an on-completion payment scheme, most of the risk falls on the developer. This ensures that the developers complete the project diligently and on time, mitigating risk for the investor.
Have the cash for a long-term investment? Then, go in for off plan property. However, if you have a short-term outlook and envision yourself living in the property, then buy ready units that offer fast profits through rental yields and capital gains.
Think you might want to sell the property prior to completion? Then, off plan is the right model for you to cash in on capital growth and avoid the costs of actually owning the property. Moreover, there is also the advantage of a fixed price, which enables you to enjoy appreciation of the total value of the property while making the payment in stages until the project is completed.
Wish to pay very small deposits until the off plan property is handed over? The good news is that developers are thinking of creative ways of enticing buyers to purchase off plan property. One such way includes waiving off the four percent registration fee for buyers and rolling out monthly payment schemes such as “capital guarantee” and “money back”. Off plan properties offer you the chance to buy a unit at a low price and gain maximum returns when you sell it later, without having to bear any costs associated with actual home ownership.
The government has introduced numerous laws to ensure legal compliance when it comes to off plan property investment. For instance, Law 8 of 2007 requires developers to register their off plan projects with Dubai Land Department and Real Estate Regulatory Agency (RERA) prior to promoting or selling units. In addition, construction progress must reach at least 20 percent completion prior to commencing promotions. When you purchase off plan units that offer an on-completion payment scheme, most of the risk falls on the developer. This ensures that the developers complete the project diligently and on time, mitigating risk for the investor.
Is off plan property the right investment option for you?
The off plan property market has become attractive with a large number of developers offering exceptionally well-priced properties and highly attractive payment plans.Have the cash for a long-term investment? Then, go in for off plan property. However, if you have a short-term outlook and envision yourself living in the property, then buy ready units that offer fast profits through rental yields and capital gains.
Think you might want to sell the property prior to completion? Then, off plan is the right model for you to cash in on capital growth and avoid the costs of actually owning the property. Moreover, there is also the advantage of a fixed price, which enables you to enjoy appreciation of the total value of the property while making the payment in stages until the project is completed.
What should you look for whilst buying off plan property?
- Why are you buying? Are you looking to live in it or are you buying Dubai property as an investment to sell or rent out in the future? Knowing this will determine the type and the location of the property you should buy.
- Ensure that the developer you are buying from has a good track record of delivering projects on time.
- What are the financing options and payment plans like?
- Do you have access to expert guidance?
- At the end of the property search, do you have a well-drawn out sales and purchase agreement by a reliable and experienced real estate agent?
5 reasons to buy off plan property
- Bargain prices: Compared to other major cities such as London and New York, property prices in the UAE are very competitive.
- Plenty of options: With numerous new projects popping up in the market on a regular basis, as an investor, you will have access to a wide range of options.
- Quick capital gains: Buying off plan property allows you to buy a property at today’s price. By the time construction is completed, the property will be worth more than the price you paid for, especially in an emerging market like Dubai.
- Great rental yields: Despite a slump in property prices since 2014, rental yields in Dubai have remained stable.
- Savings on repairs and maintenance: An off plan property offers you a brand new home that is unlikely to give you maintenance issues compared with an older property that could present expenses in the form of renovation and repairs.
